As we noted at 9 am this morning Apollo Global Management (NYSE:APO) has sold a new preferred stock offering with an announced coupon of 6.375%. The shares are rated BBB+ by Standard and Poors so the lower coupon is no surprise.
The shares are non cumulative and have the typical perpetual, but redeemable in 5 years terms. Dividends are not qualified for preferential tax treatment and owners of the shares will receive a K-1 instead of a 1099 at tax time.
This is a large offering of 12,000,000 shares and will trade under the permanent ticker of APO-B when NYSE trading begins. In the meantime the issue will be trading soon on the OTC Grey market under ticker APGGP where it will continue to trade through most of this week,
The company has another issue of preferred stock outstanding under the ticker APO-A and with the same 6.375% coupon. Details of this older issue can be found here.